Contact:

Jim Tabacchi/Murat Akgun
CMET Holdings LLC
(212) 803-5050

Roger R. Scotton
Media Relations, XL Capital Ltd
(441) 294-7165

For Immedate Release:

New York, NY, April 23, 2004 - CMET Holdings LLC (”CMET”),
a private firm specializing in creating capital-efficient platforms for
capital markets trading businesses, and XL Financial Solutions (”XLFS”),
the alternative risk transfer group of XL Capital Ltd (NYSE: XL), announced
the launch of CMET’s second trading platform with the commencement
of operations of South Street Securities LLC (”SSS”). SSS is
the second newly created broker dealer brought to market by CMET and follows
the launch of Three Rivers Securities (”TRS”) in December, 2003
which was the first of its kind “AAA/Aaa” rated independent
repo broker/dealer.

SSS has already commenced operations with a “AAA/Aaa” counterparty
rating from both Standard & Poor’s and Moody’s rating agencies.

XLFS structured a $160 million financing for SSS with additional structuring
support to SSS provided by Allianz Risk Transfer (Bermuda), Limited. Certain
operational functions of SSS, including trade operations, reconciliation,
accounting and clearing services will be outsourced to Daiwa Securities
America Inc. (”Daiwa”).

James Tabacchi, CEO of CMET and CMET Finance Holdings Inc., commented:
“SSS is the continuation of the trend started with TRS in December.
We are very excited to expand this innovative concept and continue to
bring capital efficient structures to market that revolutionize capital
markets businesses. We are delighted to have XLFS continue to share our
strategic vision and work along with us as a partner.”

Daniel L. Sussman, CEO of XLFS, said: “Closure of SSS validates
the demand for these platforms. In particular, XL is pleased to grow our
relationship with CMET and to commence one with Daiwa”;

SSS will run a $15 billion repurchase (”repo”) matched-book
of US Government and Agency collateral. The US Government repo market
is a $4 trillion market and a key component of the US money markets. The
repo market is one of the principal mechanisms through which the Federal
Reserve implements monetary policy.

This press release contains forward-looking statements. Such statements
are based on current plans, estimates and expectations. Accordingly, forward-looking
statements involve inherent risks and uncertainties, and a number of important
factors could cause actual results to differ materially from those contained
in any forward-looking statement, including, without limitation, that
CMET’s business platform may not develop to the extent anticipated.
A non-exclusive list of other important factors that could cause actual
results to differ materially from those in such forward-looking statements
is set forth in XL Capital Ltd’s most recent reports on Form 10-K
and Form 10-Q and XL Capital Ltd’s other documents on file with the
Securities and Exchange Commission. XL Capital Ltd undertakes no duty
to update publicly or revise any forward-looking statements contained
herein in light of new information, future developments or otherwise.

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